A car protector from scratches? Who has not had scratches down the side of their car? Whether it is from your overgrown driveway or if you do go off the beaten track- this product is a great solution for those annoying scratches.
Beyond its practical application there is a secondary use which is for Marketing. At Boost we had company cars, and we had great exposure driving branded cars around, but for the person who drove the car on the weekend or at other times personally, they may just want to drive a plain, unbranded car and Rinohide could be a great solution. The promotion and marketing ideas were running through my head. Mark knew his business and product and was really well prepared with patents and trademarks.
When you have a great idea, funding the growth is tough, particularly if there is $30K per mould, per product and with car shapes changing all the time, this cost would be endless and being pre-revenue (no sales), we are not 100% sure the customer on mass, wants it. These were the big issues that stopped me from investing.
The boys clearly saw things differently and wanted a piece of the action. Andrew had some great ideas, very much based on the marketing play.
Mark needed the cash, but he did not want to dilute too far- thrilled for Mark to get a good deal!
Tip : When you are looking for investment, do some research on the people you are pitching to : if they are passionate about an particular industry, then they are more likely to invest. The boys who love being off road, could really see how this would work. Naomi and I less so. But end of the day it was the boys would wanted a piece of the business.
How cool are those guitars!? Loved them the moment I saw them. Perry is clearly a talented guy who is extremely well regarded in his industry. I liked him and I like the product BUT the business was Perry, and for scalability and actually getting a return, I did not see this in the near future. Ombsy guitars is Perry’s passion so how does an investor get an exit?
You heard all the sharks speak highly of Perry’s business today, so then why did they not invest? It is the same reason I did a debt deal, because the business is Perry and getting an exit is nearly impossible.
Perry’s business was good and he deserved someone giving him a deal but I needed to be creative. Most investors want three times their money in a business as it is high risk. My offer of a loan with a 10% return on my money and then still holding equity in the business achieved exactly what he was looking for : Cash and an ongoing partner. For my it achieved a return and still a stake in the business to help him drive.. Win win for both parties. Steve’s carry on was not warranted, and I had put forward similar deals in the past. There are many ways of getting your money back: dividends (share of profit), loans, royalties (% of every sale) and total exit and every option has the same outcome, money returned to the investor, with continued equity to help grow the business. Steve actually made an offer in the previous show that was a loan and he wanted double his money and hold no equity, for me this would mean that he would have less care for the business once he has no more equity and his money back. Which as a young business person you would want Steve or your investor to still to have focus to help him/her grow the business. . In the end Perry would have received money to grow AND a mentor investor, which sometimes is worth more than the cash. I think Steve talked Perry out of the deal which is a shame. Perry came to the show for mentorship and help, which my offer provided.
Perry has been in contact since the show and he is doing really well and is about to go into mass market in China, which I have no doubt will be a huge success. Thrilled for Perry and I wish him all the best. This deal, may be the one that got away.
Having a debate with Steve was fun, as we are actually good mates. But for the record he was wrong….
Tip : Value what the investor can bring to the table. This deal valued my cash, ie the loan, but it also valued my time, which is what the equity is for. If you really want someone, then consider giving equity to get their attention and time. Make it clear what you require off them for this equity, because equity can be very valuable..
Take your car to the airport and they rent it for you when you are away? There are a number of these similar type businesses coming into the market place. They are the same model as Air B&B and Uber (for the record neither are yet to make a profit). The model is simple, when you go on holidays, you give these guys your car, and they insure it while you are away, clean it and rent it for you. So you not only avoid paying for parking, you get money in your pocket! Great concept BUT it takes a great deal of money to turn an idea into reality, and they are not the only players around.
The guys were passionate and had put everything in. We were all rooting for Steve to invest as he was the best partner for them. My heart when out to them when they did not get a deal, as I knew it meant the world to them. Business can be tough, with ups and downs and I truly wish these guys the best as they deserve it.
2SHU / Two Shoe
Matt was a complete surprise package. Honestly I was not sure about him at first. He seemed so layback, mixed focused and all over the shop. The idea of a 2SHU is cute, but as Andrew put it, was it a gimmick? Only time will tell.
Matt had past business experience which he went into great detail during the pitch (remember they go for over an hour sometimes). He has experience in the rag trade and in running his own business, he was creative, but was he too creative? I just was not sure whilst he was pitching and his mixed focus is a real problem for being a success.
Since working with Matt over the past few months, he continues to impress me. His boards are beautiful, his t-shirts creative and cool and he is just a really nice guy. He has great ideas, but it takes time sometimes to drag all the info out of him. We will be a good team as I will help to build business structure and disciplines that he will need to be able to grow his business and he has the great ideas. My son Oliver is a fan of his clothes and never has the t-shirts off his back.